CHARLESTON, S.C./WOLFSBURG, Germany – Marine propulsion systems manufacturer Cummins MerCruiser Diesel and Volkswagen have announced a long-term alliance to co-develop marine engines below 5 Liters that will be marketed, distributed and serviced under the CMD brand.

Key to the alliance is the planned joint development of marine engines below 5 Liters that will comply with future emissions standards. Volkswagen, a leading manufacturer of diesel marine engines up to 350 hp (258 kW), will manufacture the new engine line at its plant in Salzgitter, Germany. Additionally, effective Jan. 1, 2011, all current Volkswagen marine engines will be sold exclusively by CMD and marketed under the CMD brand.

The EPA Tier 3 emissions standard will take effect in 2012 in the United States, and the RCD2 emissions standard takes effect in 2014 in Europe for this range of engines. The new standards prescribe significantly lower thresholds for emissions of nitrogen oxides (NOx) and other pollutants and require the development of next-generation diesel combustion technology.

“We are delighted with this union,” said Alex Savelli, president of CMD. “It brings together the best minds and capabilities in the field of marine propulsion systems. For engines below 5 Liters we are convinced the relationship with Volkswagen will put us in an excellent position to meet the requirements of the new exhaust legislation for the marine industry.

“Our alliance will not only culminate in new products that set the ecological benchmark in their class, but will also bring added value with regard to reliability, reduced noise and vibrations, size, weight and power density, and will complement the complete line of engine, drive and helm/control systems currently available from CMD.”

Volkswagen officials heralded the agreement as a union beneficial for both companies.

“The name of Volkswagen stands for engines of the highest technological standard,” said Professor Dr. Werner Neubauer, a member of the Board of Management of the Volkswagen brand responsible for components. “The strategic marine business offers significant potential for both companies. We bring to the alliance our technological know-how in engine production and the well-known high-quality standard of Volkswagen products. CMD is a global provider of marine propulsion systems with a worldwide distribution and service network, and it possesses industry-leading control systems and integration capabilities”.

“The cooperation between Volkswagen and CMD is an ideal combination of the strengths of both companies,” said Dr. Arno Antlitz, a member of the Board of Management of the Volkswagen brand responsible for controlling and accounting. "The alliance gives us a great opportunity to increase sales of our engines in the marine market.”

In connection with the agreement, the CMD distribution network, beginning Jan. 1, 2011, will start assuming responsibility for service and administration of warranty claims for engines previously sold under the Volkswagen Marine brand.

For engines above 5 Liters, CMD will continue to marinize Cummins base engines in the Charleston, S.C., and Darlington, UK, facilities. The QSB, QSC, QSL and QSM engines are capable of meeting EPA Tier 3 and Europe RCD Tier 2 emissions standards with in-cylinder strategies similar to those being deployed for engines resulting from this alliance with Volkswagen.

For more information, contact CMD Marine.

About Volkswagen:
The Volkswagen Group with its headquarters in Wolfsburg is one of the world’s leading automobile manufacturers and the largest carmaker in Europe. It is the goal of the Group to offer attractive, safe and environmentally sound vehicles which are competitive on an increasingly tough market and which set world standards in their respective classes.

The Group is made up of nine brands from seven European countries: Volkswagen, Audi, SEAT, Škoda, Volkswagen Commercial Vehicles, Bentley, Bugatti, Lamborghini and Scania.

About Cummins MerCruiser Diesel Marine, LLC:
Based in Charleston, South Carolina (USA), Cummins MerCruiser Diesel is responsible for designing, manufacturing and providing reliable after-sales support worldwide for marine propulsion products. It offers a broad range of power, with available ratings from 115-715 hp for recreational applications and 150-715 hp for commercial use. Cummins MerCruiser Diesel is a joint venture between Cummins Inc. and Mercury Marine and can be found on the internet at www.cmdmarine.com.

Volkswagen Group Communications
Kai Clever
Salzgitter Plant
Phone: +49 (0) 5341 23 4582
Fax: +49 (0) 5341 23 4750
E-mail: kai.clever@volkswagen.de
www.volkswagen-media-services.com

Volkswagen Group Communications
Christoph Adomat
Spokesperson Production and Plants
Phone: +49 (0) 53 61 / 98 62 66
Fax: +49 (0) 53 61 / 957 – 86 266
E-mail: christoph.adomat@volkswagen.de
www.volkswagen.de

Cummins MerCruiser Diesel Europe
Janette Rumney
Communications Manager
Phone: +33 (0) 5 57 89 67 69
Fax: +33 (0) 5 57 89 67 61
Email: janette.rumney@cmdmarine.com
www.cmdmarine.com

Cummins MerCruiser Diesel USA
Clay Gaillard
CMD Public Relations Manager
Phone: +1 843-745-1238
Fax: +1 843-745-1616
Email: clay.gaillard@cmdmarine.com
www.cmdmarine.com